SuperSeed Sustainability Policy (ESG)

V1 – 22 May 2023

Introduction

At SuperSeed, we believe in the transformative power of technology and entrepreneurship to deliver efficiency, productivity and sustainability for the betterment of our planet and society. Our mission is to back Europe’s best B2B entrepreneurs with capital and support to help them realise their global goals, thereby driving positive change and contributing to a sustainable future.

This sustainability policy outlines our commitment to integrating environmental, social, and governance (ESG) factors into our investment and operational activities.

Vision and Mission

Our mission is to unlock more entrepreneurial talent to bring the best technology to the world, delivering the efficiency required to fulfil our promises to the planet and to humanity. Our mission revolves around three core principles:

1. Technology has the potential to empower humanity and set us free.
2. Efficiency is central to sustainability, as it enables the responsible deployment of resources.
3. Entrepreneurship is the driving force for developing and delivering impactful technology.

Impact and ESG Priorities

Our primary Impact priority is resource efficiency. We aim to promote investments that enable customers to achieve more output with less input, optimising the production and delivery of goods and services without compromising our planet’s well-being. To improve our portfolio companies opportunity to achieve this, we look to make sure they are well run across the areas of governance, data privacy and other regulatory compliance.

Sustainability Goals and Targets

Our portfolio companies primary sustainability leverage is through the impact they have on their customers’ operations. We look at this both short term and long term.

Short-term goal: All our portfolio companies should demonstrate case studies of how they enable their customers to deliver more output with less input.

Long-term goal: All our portfolio companies should track and report on the efficiency they deliver for all their customers.

Investment Criteria and Benchmarks

We evaluate potential investments based on two aspects:

1. Internal ESG performance: Prospective investee companies should demonstrate effective management of ESG risks and opportunities within their operations.
2. External Impact: Investee companies should deliver tangible, measurable, and ongoing resource efficiency for their customers.

ESG Integration and Risk Management

We integrate ESG factors into our investment decision-making process and risk management practices by assessing the following:

1. Quality and maturity of board governance
2. Data security, privacy, and data practices
3. Legal and regulatory compliance
4. Brand / impact alignment: we look to validate that firms deliver the impact they claim to deliver.

Our ESG framework is continuously updated to ensure alignment with evolving best practices and regulatory requirements.

Engagement and Monitoring

We engage with our portfolio companies on sustainability matters through monthly board meetings and require written quarterly updates on their progress. This enables us to monitor their performance and provide guidance as needed.

Employee Training and Commitment

We ensure that our employees are knowledgeable about and committed to our sustainability policy through in-house training sessions, fostering a culture of responsibility and awareness.

Reporting and Disclosure

We require our portfolio companies to report on the following sustainability-related information:

1. Governance: The number of companies with independent directors
2. Team: Employee turnover rate and the average tenure
3. Data security & privacy: Number and severity of data breaches

Collaboration and Industry Engagement

SuperSeed supports and actively engages with industry initiatives, such as VentureESG, to promote sustainable finance and contribute to the global sustainability agenda.

How We Evaluate Sustainability Risks in Our Investment Decision-Making Process

At SuperSeed, we recognize the importance of integrating sustainability risks into our investment decision-making process to ensure long-term value creation for our investors and portfolio companies. Sustainability risks, defined as environmental, social, and governance (ESG) events or conditions that could have a material impact on the financial performance of our investments, are essential to consider alongside traditional financial metrics.

Our approach to integrating sustainability risks includes the following steps:

1. Identification: During the initial screening and due diligence process, we assess potential investments for sustainability risks related to their operations, industry, and market context. This includes evaluating the investee company’s internal ESG performance and external impact on resource efficiency.
2. Assessment: We analyse identified sustainability risks to determine their potential impact on the investee company’s financial performance, growth prospects, and overall risk profile. This involves assessing the likelihood, magnitude, and timeframe of potential risks, as well as the investee company’s capacity to manage and mitigate them.
3. Integration: We incorporate the findings from our sustainability risk assessment into our overall investment decision-making process. This enables us to make informed decisions on potential investments, considering both their financial prospects and their sustainability risk profile.
4. Monitoring and Engagement: Once an investment is made, we continue to monitor the investee company’s management of sustainability risks through regular reporting and engagement. This includes reviewing their progress in addressing identified risks and discussing any new or emerging risks that may arise.
5. Reporting and Disclosure: We require our portfolio companies to report on key sustainability-related information, such as governance structure, employee turnover rate, and data security incidents. This ensures transparency and enables us to track their performance on sustainability risk management.

By integrating sustainability risks into our investment decision-making process, we strive to create a resilient and high-performing portfolio that aligns with our commitment to promoting resource efficiency and delivering long-term value for our investors, portfolio companies, and society at large.